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Initial Analysis of Adoption of Animal Welfare Guidelines on the U.S. Egg Industry, An

Author

Listed:
  • Bruce A. Babcock
  • John Miranowski
  • Roxana Carbone

Abstract

Animal welfare activists have succeeded in persuading egg purchasers to purchase only eggs that are produced according to new animal welfare guidelines. This agreement will increase the cost of producing eggs that are sold in the shell. To date, the guidelines do not apply to eggs that are broken and further processed. This agreement creates a bifurcated market: high-cost eggs in the shell and low-cost eggs that are processed. We conduct a qualitative analysis of the effects on consumers and producers from creation of this new market structure. Restricting the movement of low-cost eggs into the in-shell market in periods of peak demand will increase the price of in-shell eggs and will decrease the price of eggs destined for processing in these periods. Winners from adopting this restriction are those producers who produce only for the in-shell market. Losers from this restriction are producers who only produce for the processing market. We are currently undertaking a companion study that will provide estimates of the magnitude of the gains and losses from this new market structure.

Suggested Citation

  • Bruce A. Babcock & John Miranowski & Roxana Carbone, 2002. "Initial Analysis of Adoption of Animal Welfare Guidelines on the U.S. Egg Industry, An," Center for Agricultural and Rural Development (CARD) Publications 02-bp37, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    • Handle: RePEc:ias:cpaper:02-bp37
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    Cited by:

    1. Goddard, Ellen W. & Boxall, Peter C. & Emunu, John Paul & Boyd, Curtis & Asselin, Andre & Neall, Amanda, 2007. "Consumer Attitudes, Willingness to Pay and Revealed Preferences for Different Egg Production Attributes: Analysis of Canadian Egg Consumers," Project Report Series 52087, University of Alberta, Department of Resource Economics and Environmental Sociology.
    2. Hobbs, Jill E. & Innes, Brian G. & Uzea, Adrian D. & Zhang, Jing, 2012. "Food Quality Verifications and Consumer Trust," 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK 135069, Agricultural Economics Society.

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